Shares of Vedanta Ltd are in focus at the moment after India Ratings and Research downgraded the agency’s scores for the long-term financial institution services and debt devices. The scores have been downgraded to ‘IND AA-‘ from ‘IND AA’, Vedanta mentioned. Vedanta shares ended 2.50% greater at Rs 227.50 on October 11 in opposition to the earlier shut of Rs 222.15 on BSE. Market cap of the agency stood at Rs 84,640 crore. A complete of 12.50 lakh shares of the agency modified arms amounting to a turnover of Rs 28.36 crore on BSE. Vedanta shares have a one-year beta of 1.1, indicating excessive volatility throughout the interval.
In phrases of technicals, the relative power index (RSI) of Vedanta stands at 49.1, signaling the inventory is buying and selling neither within the oversold nor within the overbought territory. Vedanta shares are buying and selling greater than the 5 day, 10 day, 20 day however decrease than the 30 day, 50 day, 100 day, 150 day and 200 day shifting averages.
“India Ratings and Research has placed these scores on Rating Watch with destructive implications whereas reaffirming the scores on the short-term debt devices of the corporate at IND A1,” the corporate mentioned.
Vedanta inventory fell to a 52-week low of Rs 207.45 on September 28, 2023 and a 52 week excessive of Rs 340.75 on January 20, 2023.
Vedanta shares have misplaced 28% this yr and fallen 20% in a yr.
“The downgrade displays Vedanta’s elevated liquidity danger and diminished monetary flexibility on account of delays in tying up the refinancing for managing its massive upcoming bond maturiries in January 2024 and monetary yr 2024, which may probably impression the corporate’s liquidity and monetary flexibility within the interim,” mentioned India Ratings analysts in a be aware.
India Ratings additional attributed the downgrades to lower-than-expected money accruals at Vedanta owing to corrections within the commodity cycle along with the upper cost of borrowing for the latest bond issuance, which might impression the corporate’s liquidity cowl in addition to its capability to assist its firm Vedanta Resources Ltd.
Vedanta logged a 40% decline in web revenue to Rs 3308 crore within the first quarter. Revenue fell 13% to Rs 33,242 crore in Q1 from Rs 38,251 crore throughout Q1FY23. The firm declared an interim dividend of Rs 18.5 per share.
Vedanta Ltd is a subsidiary of Vedanta Resources Ltd and has operations in oil and fuel, zinc, lead, silver, copper, iron ore, metal, and aluminium and energy throughout India, South Africa and Namibia.
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